Liabilities and Assets 2006 2005 Stockholders' Equity 2006 2005 Current Assets Current Liabilities Cash 54 58.5 Accounts payable 87.8 73.5 Notes payable / Accounts receivable 56.4 39.6 short-term debt 9.8 9.6 Current maturities of Inventories 46 42.9 long-term debt 39.1 36.9 Other current assets 6.1 3.0 Other current liabilities 6.0 12.0 Total current assets 162.5 144.0 Total current liabilities 142.7 132.0 Long-Term Liabilities Long-term debt Long - Term Assets Land 66.3 62.1 229.6 168.9 Ruildings 107 7 01 5 Canital lease obligations A. 4.39 B. 2.2 C. 1.1 D. 3.07 91.5 Buildings 107.7 Capital lease obligations Equipment 119.7 99.6 Less accumulated depreciation Net property, plant, and equipment 22.8 22.2 (57.3) (52.5) Deferred taxes 236.4 200.7 Other long-term liabilities Total long-term liabilities 252.4 191.1 Goodwill 60.0 63.0 323.1 Other long - term assets 42.0 Total liabilities 395.1 242.7 Stockholders' Equity Total long - term assets 359.4 126.8 63.6 Total liabilities and 386.7 Stockholders' Equity 521.9 Total Assets 521.9 386.7 Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to: A. 4.39 B. 2.2 C. 1.1 D. 3.07

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Liabilities and
Assets
2006
2005 Stockholders' Equity
2006
2005
Current Assets
Current Liabilities
Cash
54
58.5 Accounts payable
87.8
73.5
Notes payable /
Accounts receivable
56.4
39.6 short-term debt
9.8
9.6
Current maturities of
Inventories
46
42.9 long-term debt
39.1
36.9
Other current assets
6.1
3.0
Other current liabilities
6.0
12.0
Total current assets
162.5
144.0
Total current liabilities
142.7
132.0
Long-Term Liabilities
Long-term debt
Long - Term Assets
Land
66.3
62.1
229.6
168.9
Ruildings
107 7
01 5
Canital lease obligations
A. 4.39
B. 2.2
C. 1.1
D. 3.07
Transcribed Image Text:Liabilities and Assets 2006 2005 Stockholders' Equity 2006 2005 Current Assets Current Liabilities Cash 54 58.5 Accounts payable 87.8 73.5 Notes payable / Accounts receivable 56.4 39.6 short-term debt 9.8 9.6 Current maturities of Inventories 46 42.9 long-term debt 39.1 36.9 Other current assets 6.1 3.0 Other current liabilities 6.0 12.0 Total current assets 162.5 144.0 Total current liabilities 142.7 132.0 Long-Term Liabilities Long-term debt Long - Term Assets Land 66.3 62.1 229.6 168.9 Ruildings 107 7 01 5 Canital lease obligations A. 4.39 B. 2.2 C. 1.1 D. 3.07
91.5
Buildings
107.7
Capital lease obligations
Equipment
119.7
99.6
Less accumulated
depreciation
Net property, plant, and
equipment
22.8
22.2
(57.3) (52.5) Deferred taxes
236.4
200.7 Other long-term liabilities
Total long-term liabilities
252.4
191.1
Goodwill
60.0
63.0
323.1
Other long - term assets
42.0 Total liabilities
395.1
242.7 Stockholders' Equity
Total long - term assets
359.4
126.8
63.6
Total liabilities and
386.7 Stockholders' Equity
521.9
Total Assets
521.9
386.7
Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to:
A. 4.39
B. 2.2
C. 1.1
D. 3.07
Transcribed Image Text:91.5 Buildings 107.7 Capital lease obligations Equipment 119.7 99.6 Less accumulated depreciation Net property, plant, and equipment 22.8 22.2 (57.3) (52.5) Deferred taxes 236.4 200.7 Other long-term liabilities Total long-term liabilities 252.4 191.1 Goodwill 60.0 63.0 323.1 Other long - term assets 42.0 Total liabilities 395.1 242.7 Stockholders' Equity Total long - term assets 359.4 126.8 63.6 Total liabilities and 386.7 Stockholders' Equity 521.9 Total Assets 521.9 386.7 Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to: A. 4.39 B. 2.2 C. 1.1 D. 3.07
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